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HomeMy WebLinkAbout$310,000 Economic Development Revenue Bonds PAI PropertiesORDINANCE No. 7057 -82 Passed by the Common Council of the City of South Bend, May 24, 1982 Presented by me to the Mayor of the City of South Bend, Approved and signed by IRENE K. GAMMON lr 25 Clerk of Common Council iH IRENE K. GAMMON to Clerk ORDINANCE NO. 7DS7_ya AN ORDINANCE AUTHORIZING THE ISSUANCE AND SALE OF $310,000 ECONOMIC DEVELOPMENT REVENUE BONDS OF THE CITY OF SOUTH BEND, INDIANA, FOR THE PURPOSE OF MAKING A LOAN TO PAI PROPERTIES, AN INDIANA PARTNERSHIP, IN ORDER TO FINANCE THE CONSTRUCTION AND EQUIPPING OF CERTAIN ECONOMIC DEVELOPMENT FACILITIES LOCATED IN SOUTH BEND, INDIANA; AUTHORIZING EXECUTION OF A LOAN AGREEMENT; PRO- VIDING FOR THE DELIVERY OF A NOTE AND ASSIGNMENT THEREOF AS SECURITY FOR SAID BONDS; AND AUTHORIZING AN INDENTURE OF TRUST APPROPRIATE FOR THE PROTECTION AND DISPOSITION OF THE REVENUES FROM SUCH NOTE. WHEREAS, the Common Council of the City of South Bend, Indiana, heretofore has created the South Bend Economic Development Commission pursuant to the provisions of I.C. 36- 7 -12 -1, et seq. WHEREAS, the South Bend Economic Development Commission has found by a written Resolution that because of insufficient employment opportunities, insufficient tax base and insufficient diversification of economic development facilities in and near the City of South Bend, Indiana, the economic welfare of the City of South Bend would be bene- fited by construction of certain economic development facilities pur- suant to a request made on November 20, 1981, by PAI Properties, an Indiana partnership, comprised of John E. Reuthe, G. Toms Yarger and Noel H. Yarger, ( "PAI Properties ") and has further found by Resolution that the proposed financing complies with the purposes and provisions of I.C. 36- 7 -12 -1, as amended, and WHEREAS, the South Bend Economic Development Commission has prepared a report estimating the public services which would be made necessary or desirable by the proposed project, the expenses thereof, and the total project costs of the proposed project and the number of jobs and estimated payroll on account of the construction of the pro- posed facilities relating to the proposed project, and such report having been submitted to the Chairman of the St. Joseph County Area Plan Commission and the Area Plan Commission's written comments, if any, having been made a part of their records, and WHEREAS, the South Bend Economic Development Commission has approved the form and terms of the Loan Agreement, Indenture of Trust, Security Agreement, Mortgage, Lease, Note and Bonds and has further approved the form of Ordinance authorizing the execution of the Loan Agreement, Indenture of Trust, Security Agreement, Mortgage, Note and Bonds and the issuance of Economic Development Revenue Bonds in accordance therewith, and WHEREAS, the South Bend Economic Development Commission has transmitted this form of Ordinance to the City Clerk of the City of South Bend for presentation to the Common Council of the City of South Bend, Indiana, and WHEREAS, the Common Council of the City of South Bend, Indiana, finds that the proposed development will be of public bene- fit to the economic welfare of the City of South Bend, Indiana, by tending to overcome the deficiencies previously found to exist and that such benefit is greater than the costs of the public facilities which would be required by the proposed project, NOW, THEREFORE, BE IT ORDAINED BY THE COMMON COUNCIL OF THE CITY OF SOUTH BEND, INDIANA, THAT: Section 1. The forms and terms of the Loan Agreement, Indenture of Trust, Security Agreement, Mortgage, Note and Economic Development Revenue Bonds pertaining to the PAI Properties Project facilities and the issuance of Economic Development Bonds pursuant thereto are hereby approved and adopted. Section 2. The form of Loan Agreement, Indenture of Trust, Security Agreement, Mortgage, Lease, Note and Economic Development Revenue Bonds are hereby incorporated by reference into this Ordinance and the forms shall be inserted into the records of the Common Council of the City of South Bend, Indiana, and shall be kept on file by the Clerk of the City of South Bend, Indiana. Section 3. The Loan Agreement, Indenture of Trust and Economic Development Revenue Bonds shall be executed on behalf of the City of South Bend, Indiana, by the Mayor and the Clerk manually affixing their signatures thereto. -2- Section 4. The Economic Development Revenue Bonds, pay- able solely and only from the revenue derived from the facilities, may be issued in an aggregate amount not to exceed Three Hundred Ten Thousand Dollars ($310,000.00) as registered serial bonds dated as of June 15, 1982, in denominations of Ten Thousand Dollars ($10,000.00) or multiples thereof payable in currency or its equiv- alent at the offices of 1st Source Bank, 100 North Michigan Street, South Bend, Indiana. The Bonds will be amortized over a period of ten (10) years and bear interest at the rate of fourteen percent (14 %). The Bonds will be executed and delivered during regular business hours on June 15, 1982. The Bonds are redeemable at maturity or prior thereto in accordance with the terms of Section 6.1 of the Loan Agreement. Such bonds shall be issued on behalf of the City of South Bend, Indiana, by the Mayor and Clerk of the City of South Bend, Indiana, and shall be sealed with the corporate seal of the City. Section 5. The Economic Development Revenue Bonds autho- rized by the ordinance shall not be and shall never constitute an indebtedness of or a charge against the general credit or taxing power of the City of South Bend and shall not be in any respect a general obligation of the City, nor shall the bonds be paid in any manner from funds raised by taxation. The bonds shall be payable solely from revenues and receipts derived pursuant to the terms of the Loan Agreement and Indenture of Trust. Section 6. The Resolution of the South Bend Economic De- velopment Commission passed on March 5, 1982, relating to the PAI Properties, an Indiana Partnership Project is hereby approved; and the Common Council of the City of South Bend hereby finds that the proposed financing for the issuance of the economic development revenue bonds would be of benefit to the health and welfare of the City of South Bend and that it complies with the purposes and pro- visions of I.C. 36- 7 -12 -1, as amended and supplemented. -3- Section 7. This Ordinance shall be in full force and effect from and after its passage, due attestation and approval by the Mayor. 1s' READING S'- a7v.06-� PUBLIC HEARING, 2nd READING NOT APPROVED REFERRED PASSED -4- Member of Common Council FRO IN CLERK'S OFFICE MAY 19 1982 Irene Gammon CITY CLEAN, SOWN BEND, IND. VOOR, ALLEN, FEDDER, HERENDEEN 8 KOWALS May 19, 1982 Members of the South Bend Common Council County City Building South Bend, IN 46601 AREA CODE 219 234 -6061 OF COUNSEL: WILLIAM O. JACKSON GUY H. McM ICHAEL Re: Revenue Bond Application (P.A,I. Properties, an Indiana Partnership) Proposed Ordinance Dear Councilmen: The South Bend Economic Development Commission has received an application from P,A,I, Properties for a Revenue Bond in the amount of Three Hundred and Fifty Thousand ($350,000.00) Dollars, to finance the acquisition of Real Estate and the construction of a 21,000 square -foot manufacturing building to be located in Monroe, - Sample Redevelopment Area in South Bend Area, Their business is the manufacturing of retail store fixtures. It is their intention to expand their operations in the South Bend Area, It is also their intention that 28 existing jobs would be retained and 17 new jobs would be created. This would be an approximate additional payroll of Two Hundred Thousand ($200,000.00) Dollars, On January 11, 1982, the Common Council unanimously passed Reso],ution No, 934 -82 for this project, At`tor y for the South Bend Ecno c Development Commission FILED M CLEWS OFFICE KPF ; ram MAY 19198? Irene Gammon CRY Cog, MR BEND, IND. ATTORNEYS 8 COUNSELORS AT LAW WILLIAM E. VOOR 300 FIRST BANK BUILDING LLOYD M. ALLEN KENNETH P.FEDDER SOUTH BEND, INDIANA 46601 GEORGE E. HERENDEEN ANTHONY D. KOWALS DAVID M. M.TIGUE May 19, 1982 Members of the South Bend Common Council County City Building South Bend, IN 46601 AREA CODE 219 234 -6061 OF COUNSEL: WILLIAM O. JACKSON GUY H. McM ICHAEL Re: Revenue Bond Application (P.A,I. Properties, an Indiana Partnership) Proposed Ordinance Dear Councilmen: The South Bend Economic Development Commission has received an application from P,A,I, Properties for a Revenue Bond in the amount of Three Hundred and Fifty Thousand ($350,000.00) Dollars, to finance the acquisition of Real Estate and the construction of a 21,000 square -foot manufacturing building to be located in Monroe, - Sample Redevelopment Area in South Bend Area, Their business is the manufacturing of retail store fixtures. It is their intention to expand their operations in the South Bend Area, It is also their intention that 28 existing jobs would be retained and 17 new jobs would be created. This would be an approximate additional payroll of Two Hundred Thousand ($200,000.00) Dollars, On January 11, 1982, the Common Council unanimously passed Reso],ution No, 934 -82 for this project, At`tor y for the South Bend Ecno c Development Commission FILED M CLEWS OFFICE KPF ; ram MAY 19198? Irene Gammon CRY Cog, MR BEND, IND.